CBN keeps benchmark interest rate at 11 pct

The Central Bank of Nigeria, CBN, has refused to bow to the pressure to devaluate the Naira, as it announced, Tuesday, its decision to retain the Monetary Policy Rate, MPR at 11 per cent. It has an asymmetric corridor of +200 and -700 basis points.

The Governor of the bank, Mr. Godwin Emefiele, told journalists at the end of the Monetary Policy Committee, MPC, meeting in Abuja, that Cash Reserve Ratio, CRR, and the Liquidity Ratio were equally retained at 20 per cent and 30 per cent, respectively.

Fielding questions from journalists, he said that the CBN was however, working to provide some flexibility in the forex market, with a view to deepening it at the face of persistent pressure on the Naira.

His words, “I want to assure Nigerians that we are seeking ways to improve the foreign exchange supply into the market.  And as we eventually achieve this objective, this will be unfolded, so as to ensure that we fund the forex market appropriately.

“I am sure in the course of time you will begin to see some of the efforts that we are putting in place so that you begin to see how we will provide some sort of flexibility in the market.  And also deepen the market so that businesses can continue the way they are supposed to be.”

According to Mr. Emefiele, Nigeria’s foreign reserve currently stands at $28 billion as at today.

Speaking, further on how to manage the reserves, the CBN boss said that the apex bank was already building several scenarios around the oil price and that it would ensure the best options possible.

He said, “With time you will see how we will provide the needed framework for a flexible forex regime.